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-   -   How do I determine retained earnings (https://www.askmehelpdesk.com/showthread.php?t=449882)

  • Feb 21, 2010, 04:26 PM
    kellyeblue
    How do I determine retained earnings
    I am giving a partially filled-out balance sheet and asked to find the missing numbers. I know that the current ratio is 1.75 and the debt to assets ratio of 45%.
    Assets:
    Cash 36K
    Acct r'cvable ?
    Inventory 63K
    Prepaid expenses 13,500
    Total current assets ?
    Long-term:
    Building 315K
    Less: Accujulated depreciation 45K
    Total long term 270K
    Total assets ?P
    Liabilities:
    Current Liabilites:
    Accts Payable 63K
    Notes payable ?
    Income tax payable 27K
    Total current liabilities 120K
    Long-term:
    Bonds payable 67.5K
    Mortgage payable ?
    Total liabilites ?
    Stockholders' equity:
    Common Stock 135K
    Retained earnings ?
    Total stockholders equity ?
    Total liabilities and stockholders equity ?
  • Feb 22, 2010, 10:46 PM
    morgaine300

    Write down the equations, insert what you have, and solve for what you don't have.

    For instance, you know current liabilities as that is given, and you know current ratio. You can solve for current assets with that, and go from there in the same manner. You just have to spend some time looking for what can be solved next.

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